India's central bank said on Monday that limits placed on daily cash withdrawal from ATMs and current accounts in the wake of demonetisation would be withdrawn from February 1.

RBI has also removed all limits on cash withdrawals from current accounts, cash credit accounts, overdraft accounts with immediate effect.

India's central bank added that the weekly limit of Rs 24,000 on cheque withdrawals from savings bank accounts will continue, but promised to review this in the near future depending on the pace of remonetisation. PTI reported.

"The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future," it said.

Banks, however, have been asked to fix their own limits, was the case before the demonetisation of Rs 500 and Rs 1000 notes on November 8, 2016.

It further said that banks have been "urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode."

In a surprise move, PM Modi announced demonetisation on November 8 to curb the spread of black money and counterfeit currency and to bring unaccounted wealth into the mainstream economy. The government also placed a withdrawal limit of Rs 2000 a day in ATMs and Rs 10,000 per day and Rs 20,000 per week in banks in view of currency shortage following demonetisation.

These limits, however, were gradually eased with RBI pumping in new notes of Rs 500 and Rs 2000.

The withdrawal limit from ATMs was increased to Rs 4,500 per day from ATMs from January 1. The weekly withdrawal limit from banks stood at Rs 24,000. On January 16, the RBI again raised the cash withdrawal limit from ATMs to Rs 10,000

On January 16, the RBI again raised the cash withdrawal limit from ATMs to Rs 10,000 from Rs 4500 while keeping the weekly withdrawl limit from banks unchanged at Rs 24,000. It had also raised the current account withdrawl limit to Rs 1,00,000 from Rs 50,000.